JP 3E Holdings Inc (SPZID)

[stervc]

SPZI/JP3E .015 to .085+ “Actual” Fundamental Valuation…

In my opinion, SPZI/JP3E is significantly undervalued. Normally when I do a valuation post, it’s based upon “speculation” in hopes that a company will deliver the numbers within their financials to justify such ”speculated” valuation to transform into an “actual” valuation. Something else important to note before reading how I derived the following fundamental valuation below, this valuation below is primarily from the over $100 Million in Revenues and the $6.1 Million in Net Income that the SPZI/JP3E acquisition of Bloxcross has brought to the table. I am going to show how the company should be trading anywhere from .015 to .085+ per share. It does not include any significant amount of Revenues that I am very confident that will be coming from their Chicken, Sugar, Zinc, Aluminum, and Gold food and metals commodity contracts. I will try to keep this very simple for everyone as I challenge anyone to find me a penny stock with these kinds of financials.

For those that are new to the company, before reading the valuation numbers following, read the SPZI/JP3E Shareholder’s Deck below for a more informative perspective of their operations to understand why I suspect much more is coming to justify a yet higher valuation:
https://www.jp3e.com/shareholder-deck
https://irp.cdn-website.com/08889bdf/files/uploaded/JP3E_Shareholder_Deck.pdf

SPZI/JP3E has recently filed their Consolidated Financial Results for Nine Months Ended September 30, 2024:
https://www.otcmarkets.com/otcapi/company/financial-report/417481/content

Key Highlights: 9 Months Ended 30 Sep 2024

Revenue: $112.2 million, marking the first recorded revenue for JP3E, driven by contributions from recently acquired Bloxcross, Inc.

Gross Profit: $14.4 million, showcasing the company's ability to manage cost of goods sold effectively.

Net Income: $6.1 million, a significant improvement from a net loss of $14,014 in Q3 2023.

Total Assets: Increased to $43.5 million from $8,774 as of December 31, 2023, reflecting acquisitions and asset appreciation.

Earnings Per Share: $0.001, emphasizing the impact of JP3E’s expanded operations.

Based on the “Key Highlights” above, SPZI/JP3E had $6.1 Net Income for the 9 Months Ended 30 Sep 2024. That’s an average of approximately $677,777 per month. Based on what has been generated in Revenue thus far, I think it’s very safe to presume that we will see such an average for the 4th Quarter to culminate with a total for the 12 Months 2024 upcoming "audited" financials to be as indicated below for Net Income…

$677,777 x 12 months = $8,133,324

With SPZI/JP3E having Outstanding Shares (OS) of 5,799,910,503 Shares, we can derive its Earnings Per Share (EPS) for the year 2024 to be…

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share EPS
Earnings Per Share (EPS) x Price to Earnings (PE) Ratio = Share Price Valuation

$8,133,324 ÷ 5,799,910,503 Shares (OS) = .0014 EPS

Now we must multiply this .0014 EPS by a Price-to-Earnings (P/E) Ratio to determine where the stock should fundamentally trade. For those new to understanding what a Price-to-Earnings (P/E) Ratio is and key dynamics, it is referred to as the growth rate for a stock that exists within a particular Industry or Sector. Read the links below that hopefully will help one to see how it's used to assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

To further articulate what I explained above, look at many of the major market stocks such as MSFT, CSCO, QCOM, AAPL, etc. Look at their Earnings Announcements and see how low their Earnings Per Share (EPS) is compared to the dollars per share price that those stocks are trading. They trade much higher than their EPS because the market takes into consideration the growth rate (or P/E Ratio) for the Industry for which they exist to trade. Again, the P/E Ratio is "multiplied" by the EPS to determine where a stock should fundamentally trade.

For SPZI/JP3E, the company could exist within a couple different Industries which means that Investors that exist and support each Industry are likely to have an interest in SPZI/JP3E once they learn about their new growth and what they are doing to grow their operations. With the majority interest acquisition of Bloxcross existing within the Blockchain and Cryptocurrency realm, an argument could be made that SPZI/JP3E, as the Parent Company, exists within the Cryptocurrency Industry . Especially since Bloxcross accounts for over $100 Million of their Revenues. The P/E Ratio for the Crypto Industry is around 50-52 for its growth rate if one were to Google such. In doing so, one will also learn that the Network Value to Transaction (NVT) ratio is the crypto equivalent of the price-to-earnings (P/E) ratio for equities. For inquiring minds, the NVT ratio compares a cryptocurrency's market capitalization to its network transfer volume, which is similar to earnings. The Food Processing Industry has 49 for its P/E Ratio which where the company could exist within too. Also, an argument could be made that SPZI/JP3E could exist within the Commodities Industry which has [b10.74 for its P/E Ratio:
https://eqvista.com/price-to-earnings-pe-ratios-by-industry/

Following below, I will use 50 for the high side and 10.74 for the low side of the P/E Ratios to use as the multiple (or growth rate) to be able to assess the fundamental valuation of where SPZI/JP3E should potentially trade. The EPS was .0014 from the calculation above. So…

.0014 EPS x 50 P/E Ratio = .07 Per Share Price Valuation

.0014 EPS x 10.74 P/E Ratio = .015 Per Share Price Valuation

Combined = .085 Per Share Price Valuation

You can actually consider the combined consideration since the company will actually exist to trade within multiple Industries attracting multiple investors from multiple Industries.

They have already completed their audited financials for 2023 and 2022. No doubt 2024 will be audited financials and will have even larger numbers than above within them in my opinion. The above .015 to .085+ per share valuation is predicated upon what’s in the company right now. It does not take into account the huge growth that has yet to have been captured from all of the other operational things that the company has announced to be coming.

Now read this PR which confirms that they are working on their Form 10, 15c2-11, Removal of Shell Risk, and with FINRA to complete its name, ticker, and CUSIP number changes.
https://www.otcmarkets.com/stock/SPZI/news/story?e&id=3011683

In my opinion, this is still the beginning of major growth as I still believe SPZI/JP3E is in its infant stages of growth, yet still. Again, I challenge anyone to find me a penny stock with these kinds of financials. These financials are better than quite a few stocks that are on the NASDAQ and NYSE. I think all investors, old and new, should go through the links below to further understand the operations that exists here under the umbrella of JP3E:

SPZI/JP3E Shareholder’s Deck below for a more informative perspective of their operations:
https://www.jp3e.com/shareholder-deck
https://irp.cdn-website.com/08889bdf/files/uploaded/JP3E_Shareholder_Deck.pdf

https://www.jpenergygroup.com/
https://www.jpenergygroup.com/corporate
https://www.jpenergygroup.com/sugar
https://www.jpenergygroup.com/chicken
https://www.jpenergygroup.com/beef
https://www.jpenergygroup.com/pork

v/r
Sterling